Rotem Shani (RTSN) AI Stock Analysis

• Market Cap: 538.00M
• Dividend Yield: 2.75%
• Average Volume (3M): 7.27K
• Price to Earnings (P/E): 6.3
• Beta (1Y): 1.01
• Revenue Growth: -14.53%
• EPS Growth: 2.39%
• Country: IL
• Employees: 39
• Sector: Services
• Sector Strength: N/A
• Industry: Residential Construction
• EPS (TTM): 74.40
• Shares Outstanding: 15,219,286
• 10 Day Avg. Volume: 12,332
• 30 Day Avg. Volume: 7,271
• PEG Ratio: 1.52
• Price to Book (P/B): 2.09
• Price to Sales (P/S): 1.28
• P/FCF Ratio: -5.45
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: 3,556.00 ▲(0.14% Upside)

The overall stock score of 60 reflects a mixed outlook. The most significant factor is the company's financial performance, which is challenged by declining revenue and negative cash flows, despite strong profitability margins. Technical analysis shows bullish momentum, but the stock is overbought, indicating potential short-term volatility. The valuation is favorable, with a low P/E ratio and a solid dividend yield, suggesting potential value for investors.

Rotem Shani Business Overview & Revenue Model

Company Description

Rotem Shani (RTSN) is a dynamic company operating primarily in the technology and innovation sectors, specializing in the development and deployment of advanced software solutions tailored for various industries. The company focuses on delivering cutting-edge products that enhance operational efficiency and data analytics capabilities, catering to a diverse clientele ranging from small businesses to large enterprises.

How the Company Makes Money

RTSN generates revenue through multiple streams, including software licensing fees, subscription services for its cloud-based solutions, and consultancy services aimed at optimizing clients' technology infrastructures. The company also partners with industry leaders to integrate its products into larger systems, thereby expanding its market reach and driving additional sales. Key partnerships with technology firms and strategic alliances in various sectors further enhance its revenue potential, as RTSN capitalizes on collaborative projects and joint ventures that yield mutual benefits.

Rotem Shani Financial Statement Overview

Summary

Rotem Shani faces significant challenges, particularly in revenue growth and cash flow management. While profitability margins are strong, the high leverage and negative cash flows pose risks to financial stability. The company needs to address revenue decline and improve cash flow generation to enhance its financial health.

Income Statement

The income statement shows a significant decline in revenue growth rate, with a TTM decrease of 97.26%. Despite this, the company maintains a strong net profit margin of 17.50% and a gross profit margin of 27.97%. However, the negative revenue growth is a major concern, indicating potential challenges in maintaining sales momentum.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 1.70, indicating significant leverage. However, the company has a strong return on equity of 36.42%, suggesting efficient use of equity to generate profits. The equity ratio stands at 28.78%, showing a moderate level of equity financing relative to total assets.

Cash Flow

The cash flow statement reveals negative operating and free cash flows, with a concerning free cash flow growth rate of -82.12% in the TTM. The operating cash flow to net income ratio is negative, indicating cash flow issues despite reported profits. The free cash flow to net income ratio is slightly above 1, suggesting that free cash flow is just covering net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	334.63M	417.90M	28.08B	289.86M	359.18M	197.13M
Gross Profit	102.35M	114.21M	7.29B	74.06M	73.17M	38.62M
EBITDA	127.36M	95.28M	8.49B	52.28M	60.48M	31.26M
Net Income	84.63M	61.97M	5.87B	31.19M	28.42M	6.53M
Balance Sheet
Total Assets	1.05B	817.84M	62.86B	583.12M	487.81M	309.12M
Cash, Cash Equivalents and Short-Term Investments	72.96M	80.57M	2.65B	162.70M	105.47M	65.94M
Total Debt	561.93M	385.60M	22.78B	170.66M	118.88M	90.64M
Total Liabilities	748.68M	562.11M	42.57B	440.79M	390.96M	285.11M
Stockholders Equity	302.50M	255.73M	20.29B	142.32M	96.84M	24.01M
Cash Flow
Free Cash Flow	-278.13M	-98.08M	-11.10B	56.56M	-32.42M	9.12M
Operating Cash Flow	-278.03M	-97.98M	-97.69M	56.68M	-32.23M	9.12M
Investing Cash Flow	49.85M	-1.53M	6.54B	-65.21M	-13.45M	-6.69M
Financing Cash Flow	294.92M	129.45M	4.29B	65.74M	85.02M	-6.67M

Rotem Shani Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3551.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:RTSN, the sentiment is Positive. The current price of 3551 is above the 20-day moving average (MA) of 3209.50, above the 50-day MA of 3195.32, and above the 200-day MA of 3402.63, indicating a bullish trend. The MACD of 116.85 indicates Negative momentum. The RSI at 68.07 is Neutral, neither overbought nor oversold. The STOCH value of 86.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:RTSN.

Rotem Shani Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ROTS	76 Outperform	1.68B	11.50	―	1.32%	14.62%	103.71%
RTSN	60 Neutral	538.00M	6.32	―	2.75%	-14.53%	2.39%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%